Global Distribution System or GDS is a network that enables travel agencies to access and sell travel products like flights, hotels, and car rentals. It is a crucial tool in the travel industry that connects travel providers with travel agents and ultimately with customers. But how did GDS come to be and what are its impacts on the travel industry? Let's take a closer look.
The Birth of GDS
In the 1950s, airlines began using computer systems to manage flight reservations. These systems were called Airline Reservation Systems or ARS. They allowed airlines to automate the booking process and manage their inventory more efficiently. However, each airline had its own ARS, which made it difficult for travel agents to compare prices and availability across different airlines.
In the 1960s, a solution was proposed by American Airlines. They created a system that could connect their ARS with other airlines' ARS. This system was called SABRE (Semi-Automatic Business Research Environment). It allowed travel agents to access real-time information about flights, availability, and prices across multiple airlines. This was the birth of GDS.
The Rise of GDS
GDS became popular in the 1980s as more airlines joined the network. It became the primary tool for travel agencies to book flights, hotels, and car rentals for their clients. GDS also allowed airlines to reach a wider audience and increase their sales.
However, GDS was not without controversies. In the 1990s, airlines began to charge GDS fees to cover the cost of using the network. This led to a conflict between airlines and travel agencies. Travel agencies argued that the fees were too high and that airlines were using their monopoly power to control the market. Airlines, on the other hand, argued that the fees were necessary to cover the cost of maintaining the network.
The Impact of GDS
GDS has transformed the travel industry in many ways. It has made it easier for travel agencies to book flights, hotels, and car rentals for their clients. It has also made it easier for consumers to compare prices and availability across different airlines.
However, GDS has also faced competition from online travel agencies (OTA) like Expedia and Booking.com. These OTAs have created their own booking systems that allow consumers to book travel products directly. This has led to a shift in the market from traditional travel agencies to online booking platforms.
The Future of GDS
GDS is still an essential tool in the travel industry, but it is facing new challenges. The rise of OTAs and the increasing use of artificial intelligence (AI) in travel are changing the market. Some experts predict that GDS may become obsolete in the future as airlines and hotels develop their own booking systems powered by AI.
Despite these challenges, GDS continues to play a vital role in the travel industry. It connects travel providers with travel agents and ultimately with customers. It has transformed the way we book travel products and has made travel more accessible to everyone.
Conclusion
GDS has come a long way since its inception in the 1960s. It has transformed the travel industry and made it easier for travel agencies to book travel products for their clients. However, it is facing new challenges from the rise of OTAs and the increasing use of AI in travel. Despite these challenges, GDS continues to play a vital role in the travel industry and will likely do so for many years to come.
